Equidyne to Distribute INJEX Through 250 Stop & Shop Pharmacies.

Health/Medical Writers

SAN DIEGO, Calif.--(BW HealthWire)--Oct. 11, 2001

EQUIDYNE CORPORATION (AMEX:IJX) announced today that the company has finalized an agreement with Royal Ahold NV and its subsidiary, the Stop & Shop Supermarket Company, to distribute and co-market the INJEX(TM) Needle-Free Drug Delivery System developed and manufactured by Equidyne, through approximately 250 Stop & Shop stores located throughout five states.

Stop & Shop is the largest food retailer in New England, employing more than 60,000 associates and operating more than 319 stores throughout Connecticut, Massachusetts, New York, New Jersey and Rhode Island. Its parent company, Royal Ahold NV, based in the Netherlands, is one of the largest food retailers in the world with supermarket companies in the United States, Europe, Latin America and Asia and annual sales of US$35 billion.

"This agreement represents a major step toward expanding our retail distribution of INJEX(TM) in the U.S. diabetes market," said Dr. James Gavin, Chairman of Equidyne. "Stop & Shop has superior brand-name recognition and is backed by one of the world's largest food retailers. We are pleased to add a company of this stature to our team of retail marketing partners."

Under the agreement, Super Stop & Shop locations with retail pharmacies will stock the INJEX(TM) product line in their stores. The stores also will participate in a program to promote INJEX(TM) during National Diabetes Month. The stores will host approximately 20 Diabetes Awareness Programs on Saturdays in October and November in stores located in Massachusetts, Connecticut and Rhode Island.

"By making the INJEX(TM) Needle-Free Delivery System available at Stop & Shop Pharmacies, we will be providing our diabetes customers, who may be uncomfortable with needle injections of insulin, the opportunity to try this clinically proven product," stated Andy Olem, R.Ph., Diabetes Care Coordinator at Stop & Shop.

As part of Stop & Shop's continuing efforts to support people with diabetes, in-store programs such as diabetes food and pharmacy tours, diabetes alert day screenings and diabetes care days are offered regularly to educate people with diabetes on managing and controlling their disease.

The INJEX(TM) product line for the diabetes market consists of the INJEX(TM) 30 Needle Free Injector, single-use disposable Ampules, and Vial Adapters that fit on standard insulin vials. Instead of using a needle, INJEX(TM) propels a fine stream of insulin through a tiny opening at the end of a disposable ampule. The pressure gently pushes the insulin into the tissue under the skin. INJEX(TM) is clinically proven to deliver commonly prescribed insulins safely and just as effectively as conventional needle injections, but without the use of needles.

Equidyne Corporation (www.equidyne.com), through Equidyne Systems, Inc., a wholly owned subsidiary based in San Diego, is focused on becoming the worldwide leader in needle-free drug delivery systems for subcutaneous and intramuscular injections. The FDA-approved INJEX(TM) needle-free injector is a compact, uncomplicated device that delivers a virtually painless injection through the skin in a fraction of a second, and eliminates needle stick and disposal problems. The INJEX(TM) system is a comfortable, economical alternative to delivering medications using conventional needle injections.

The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, risks associated with excess or obsolete inventory; the potential impairment of assets; delays in product introductions; changes in healthcare regulations and the ability to obtain favorable insurance reimbursement coverage for the Company's products; product acceptance or changes in government regulation of the Company's products; the Company's ability to manufacture its products in sufficient quantities to meet the demands of the marketplace; the Company's dependence on key customers and suppliers and their financial viability; the impact of competition; the Company's ability to effectively manage growth; the effect of losses and other factors on the Company's business and results of operations; and the Company's capital resources and its ability to fulfill its existing obligations and ongoing capital needs. These and other risk factors are discussed in the Company's filings on Forms 8-K, 10-QSB and 10-KSB.